Analysis of Entrepreneurial Ventures in Brent Council, London

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ENTREPRENEURSHIP AND SMALL BUSINESS MANAGEMENT

Table of Contents
INTRODUCTION............................................................................................................................. 2
TASK 1............................................................................................................................................ 3
LO1.................................................................................................................................................3
P1&M1 EXAMINE DIFFERENT TYPES OF ENTREPRENEURIAL VENTURES AND EXPLAIN HOW
THEY RELATE TO THE TYPOLOGY OF ENTREPRENEURSHIP........................................................3
P2 EXPLORE THE SIMILARITIES AND DIFFERENCES BETWEEN ENTREPRENEURIAL VENTURES. .7
LO2.................................................................................................................................................9
P3 INTERPRET AND ASSESS RELEVANT DATA AND STATISTICS TO ILLUSTRATE HOW MICRO
AND SMALL BUSINESSES IMPACT ON THE ECONOMY...............................................................9
P4 EXPLAIN THE IMPORTANCE OF SMALL BUSINESSES AND BUSINESS START-UPS TO THE
GROWTH OF THE SOCIAL ECONOMY.......................................................................................11
M2 EVALUATE THE DIFFERENCES SMALL, MEDIUM AND LARGE BUSINESSES MAKE TO THE
ECONOMY, APPLYING RELEVANT DATA AND STATISTICS........................................................12
1

INTRODUCTION
In the context of business, the process of establishing a business venture for various kinds of
purposes such as profit earning or public welfare is termed as entrepreneurship and the
business is termed as entrepreneurial venture (Kuratko, 2016). An individual or a group of
individuals, in this case, is termed as entrepreneurs. The purpose of this report is to understand
different aspects of entrepreneurship. In this report, the Brent Council of London is chosen as
the borough for the sake of reference in the study of entrepreneurship. This report will enable
the learners to understand the different types and aspects of the entrepreneurship. Borough
can be termed as a part of a city has the power of self-governance. The analysis of the whole
report will be carried out from the point of view of the chairman of Brent council.
2

TASK 1
LO1
P1&M1 EXAMINE DIFFERENT TYPES OF ENTREPRENEURIAL
VENTURES AND EXPLAIN HOW THEY RELATE TO THE TYPOLOGY
OF ENTREPRENEURSHIP
The phenomenon in which an individual or a group of individuals design, launch and run a
business which also involves the financial risk with the purpose of earning a profit is termed as
entrepreneurship and the people carrying out this process are termed as entrepreneurs. This
establishment results in an organization which is usually a small one is termed as the enterprise
(Mair et al., 2012).
When an individual within an organization is permitted to implement strategies for the
development of the new product without concerning about the success or failure of the
product as it is taken care by the organization, that person is termed as an intrapreneur.
On the other hand, the entrepreneur is the person who takes full responsibility of the failure
and success of the business venture as the profit or loss is experienced by the entrepreneur
itself (Fitzsimmons and Douglas, 2011).
On the basis of purpose entrepreneurship is divided into following types which are stated
below:
Private entrepreneurship
The entrepreneurship venture which is established for the purpose of own welfare and profit is
termed as the private entrepreneurship venture. This type of business venture is owned by an
individual or group of individuals. In this entrepreneurship, the promotion of the employees is
dependent on the performance of the employees and their contribution to the betterment of
the organization (Lerner et al., 2012). For example, In Brent council of London private housing
services provide property licensing for landlords.
3

Public entrepreneurship
The entrepreneurship venture which can be owned by the group of people, as well as the
government, is termed as the public entrepreneurship. There is not a fixed number of
shareholders in public entrepreneurship and the shares of the venture are open to being sold
among the regular public (Klein et al., 2010). Mostly these ventures are owned by the
government. The promotion of the employees in this kind of ventures is based on the level of
sincerity and the employees also get a pension in this venture after retirement. For example,
Ashford place is a resource centre in Brent which provides housing, health, training and
employment to the public of Brent.
Social entrepreneurship
The business ventures which have the sole purpose of welfare of needy people are termed as
the social or voluntary entrepreneurship. These ventures are irrelevant to the ownership as
these can be owned by the government, private owners or both (Klein et al., 2010). This
ventures provide aid to the people who are not able to manage the basic amenities such as
food, shelter, clothing etc. Along with that, this venture provides healthcare and relief services
to the people who are in need. For example, CVS is the social entrepreneurship of Brent which
takes care of the employment services for the local people of the community.
Technology entrepreneurship
This is the business venture in which the business is set up for the purpose of research and
development in the field of technology. This can be established by an individual or a group of
individuals for the purpose development of the technology for contributing in the economy of
the country or developing the country in the field of technology (Klein et al., 2010).
Lifestyle entrepreneurship
This is the business venture established by an individual or group of individuals with the
purpose of living a specific level of lifestyle either it can be a lifestyle with all comforts or the
lifestyle with limited or required facilities. This business venture is private and any kind of
business can be set up in this venture (Klein et al., 2010).
4

On the basis of size the entrepreneurship ventures can be of following types:
Small business venture
The small business venture can be stated as the business in which the number of employees is
equal to 50 and the turnover is around 2 million GBP annually (Burges Salmon, 2019). In Brent
council, financial support can is provided to the people with an innovative business idea for the
setup of business.
Medium business venture
The medium sized business ventures can be stated as the business in which the number of
employees is up to 250 and the turnover is around 10 million GBP annually. In Brent, the
investment in this kind of venture is done and the financial support is provided on the basis of
authenticity of the idea (Burges Salmon, 2019).
The issue of Small scale entrepreneurship in Brent
The major issue of Brent is the closing of the small scale entrepreneurship ventures which will
affect the economy of the borough negatively. Thus in order to prevent the closing down of the
business venture as the Chairman of the council I am introducing an action plan for the smooth
running of the new startups.
Table 1: Action Plan
REASON OF CLOSING DOWN ACTIONS TO BE TAKEN TIME PERIOD
LACK OF EFFECTIVE IDEA The business ventures must
review their ideas and
appropriate changes must be
carried out in the business.
2 months
INEFFECTIVE MARKET
STRATEGY
The marketing strategy of the
small business ventures must
be such that the people with
low-income grade must be
4 months
5

targeted and the pricing
strategy must be made
according to that.
DEMOTIVATION IN
EMPLOYEES
The employees must be
motivated so that they will
work with the notion of the
welfare of the organization
3 months
INEFFECTIVE CUSTOMER
SERVICES
The customer care strategy
must be renewed in order to
attract the customers
towards the product and
services of the organisation
5 months
UNEXPERIENCED
WORKFORCE
The recruitment of the
experienced employees must
be done and the training
programs must be conducted
for the making the workforce
effective and efficient
6 months
Source: [Author’s Work]
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P2 EXPLORE THE SIMILARITIES AND DIFFERENCES BETWEEN
ENTREPRENEURIAL VENTURES
Table 2: Similarities and Differences
TYPES OF
ENTREPRENEUR
VENTURES
DIFFERENCES SIMILARITIES
Voluntary
entrepreneurship
The sole purpose is the welfare
of the welfare of the poor and
needy people
To serve the maximum number
of poor and needy people by
increasing the sales of the
organization and earn the profit
(Schwienbacher and Larralde,
2010).
Lifestyle
entrepreneurship
The sole purpose is to gather
the resources required for the
desired lifestyle.
To fulfil the basic needs and the
decided facilities for the desired
level of lifestyle and hence
increase the sales of the
organization.
Small scale
entrepreneurship
To establish the organization
for the purpose of increasing
the employment in the locality
and contributing to the
economy of the borough
(Schwienbacher and Larralde,
2010).
To provide products and
services of good quality in order
to increase the demand of the
products thereby giving
employment to the maximum
number of people and increase
the sales to expand the
organization
Medium scale
entrepreneurship
To increase the sales of the
organization in order to benefit
the stakeholders and to make
To expand the organization and
convert it to the large scale
organization in order to
7

the brand image of the
organization strong.
contribute to the economy of
the borough and introduce
global products to the
customers.
SOURCE: [Author’s Work]
8

LO2
P3 INTERPRET AND ASSESS RELEVANT DATA AND STATISTICS
TO ILLUSTRATE HOW MICRO AND SMALL BUSINESSES IMPACT
ON THE ECONOMY
The number of employees in the micro business is less than 10 whereas in small scale
organisations the number of employees is less than 50. The micro and small scale organization
are the reason for economic growth of UK. The reason behind is that the micro and small scale
businesses need very less amount of capital investment and easy to establish (Goffee and
Scase, 2015). The 99% of the private organizations in the UK are small business organization
and provides employment to the maximum number of employees.
Figure 1: Shares of enterprises in the UK private sector
Source: [Business statistics, Parliament.UK, 2018
Importance of Micro and small scale organisations in the economy of the UK
9

Importance of the micro and small scale ventures can be understood from the fact that these
organisations aid the economy of the UK by producing a maximum number of jobs for the
unemployed population of UK and provides the jobs of various kinds as per the eligibility of the
candidates thereby supporting the economy of the country.
Around 95% of the organisations in the UK are a micro business which makes the UK fourth
country in the highest number of micro businesses after the Czech Republic, US and Indonesia.
Being the backbone of the economy of UK the micro business organisations are still struggling
in the UK. But regardless of what the micro-businesses can be found and said to be effective in
the economy of UK.
The main support of the small and microscale business to the economy of the UK is that these
organisations pay taxes to the government and the government uses this tax for the
development of public places such as roads, schools and hospitals.
10

P4 EXPLAIN THE IMPORTANCE OF SMALL BUSINESSES AND
BUSINESS START-UPS TO THE GROWTH OF THE SOCIAL
ECONOMY
The increasing and decreasing rate of the employment and the recession is the indicator of the
importance of the small business and the startups in the growth of the social economy of UK.
Every year 20% of the total jobs in the UK are produced by the startups.
In the UK more than half of the total organization running actively are either the startups or the
small business ventures. Around 3 and half million unemployed people get the job through the
startup which is 12% of the total employees in the country (Fritsch, 2013).
Startups and the small business are responsible for the growth of the social economy of UK. The
benefits from the small business ventures can be understood from the statements stated
below:
 The GDP of the country gets increased by the increase in the employment of the local
population which is provided by the small business ventures (Barkham et al., 2012).
 Since the small scale organisation manufactures products for the local people of the
country, the money rotates inside the country thereby increasing the amount of tax
collection which is used for the social development by the government.
 Since the small business benefits society, the number of investors increases to support
the organisation thereby improving the financial condition of the organisation.
11